The US Bankruptcy Court for the Southern District of New York has approved airBaltic to access $162 million (€140 million) in financing and continue operating under Chapter 11 proceedings.
On September 16, 2026, the Latvian carrier said it was granted permission by the court to access debtor-in-possession (DIP) financing so it can keep operating while its bankruptcy case is underway.
airBaltic can now immediately access the initial tranche of $162 million of the previously announced $405 million (€350 million) financing facility.
The airline voluntarily filed for Chapter 11 bankruptcy protection in the US on September 14, 2026.
The $405 million financing has been put up by Strategic Value Partners, Barclays, Hayfin Capital Management, Morgan Stanley, and Oaktree Capital Management.
Erno Hildén, President and CEO of airBaltic, said that the court’s decision was an “important first step in our financial reorganization”.
“The approval of our DIP financing provides additional financial stability as we work to build a stronger and more sustainable airBaltic,” Hildén said. “For our passengers, employees and partners, our focus remains unchanged: we continue flying and serving our customers as normal.”
The US Court’s approvals authorize airBaltic to:
- Operate its flight schedule and wider business without interruption;
- Pay employee wages, salaries and benefits without interruption;
- Honor existing customer bookings, tickets, vouchers, refunds and loyalty points as normal;
- Honor certain obligations to critical suppliers, travel agency partners and distribution partners;
- Pay suppliers and vendors on normal terms for goods and services delivered on or after September 14, 2026, as well as pay taxes, insurance premiums and regulatory fees in the ordinary course. and regulatory fees in the ordinary course.
“There is no impact on passengers, and operations continue as normal,” airBaltic added. “Refunds, vouchers, gift cards, and credits related to baggage or service claims will continue to be processed in line with existing policies. Passengers with upcoming travel do not need to take any action.”
airBaltic said moving forward it will “continue its financial reorganization under the supervision of the U.S. Court and discussions with creditors and other stakeholders”.